such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. welcome back to "squawk on the street." in washington, i wanted to bring you up to date on a briefing on got on when the government might actually run out of money. the estimated time according to bipartisan policy center is from february 15th to march 1st. that is earlier than some people expected. after that, treasury would have to prioritize payments,

presumably february 1st. timely one vable is delaying tax refunds. that could buy an extra four weeks. bottom line, these fiscal policy experts say it's an unpress dentd situation, can't predict what would happen. the president might reserve the constitutional authority to do it even though they don't think they have that power. >> i'm glad we snuck that in this morning. john harwood, thank you. let's get to scott wapner and the fast mope halftime. >> carl, thanks so much. welcome to the halftime show, four hours to go until the close on this monday. here is where we stand on the street right now. basically, at the lows of the day for the major averages. this coming off the best close in stocks for over a year. fed fight, why the battle inside the central bank is more serious than you think and what it means for your money.. debate it, netflix tops $1 hunl

for the fist time in four months. is it in your portfolio? but first, our top stories, bull run. stocks sitting near five-year highs. we're trading the markets today with virtual john najarian, josh brown and joe tear knranova. is the bull market just getting started or about to end? >> i've told you since the beginning of the year, that's not where the focus is for me. the focus is on the individual sectors. you're get ago pullback today on the financials. they're going throw a report next week. wells fargo at the end of this week. not interested in that. i am interested in goldman sachs. i believe you're going to see significant eps and sales growth within the financial sector. i will be adding to goldman sachs on further weakness towards 130. >> i don't think i was asking about goldman sachs. is the bull market just getting started? joe terranova? >> let me rephrase exactly what

i said to you. if you want to make money, get the sectors right. don't listen to all the nonsense about where the s&p is going three months, six months, 1600, 1250. focus on the sector. get the sectors right first. is the full market just getting started or is it just about to end? >> i don't know. no, i'm just kidding. >> hey, that's all right. >> just kidding. how about that? we're getting into year five of this current bull market. everyone is well aware that all the hard decisions on the debt ceiling have been pushed. we know first quarter numbers are probably too high. but something else is happening that is even bigger which is a massive reallocation out of fixed income. at least at the very short end right now. all types of different benefits. from that standpoint, i would say this year we have much more room to run and i don't think we should be talking about when it's over. >> stephanie link, you're going answer my question, aren't you? >> i did. >> answer the question.

we're rocking. we're okay. >> i think it can go higher because the u.s. economy is starting to improve. friday, we got good job numbers, right? they were in line, but the underlying numbers were pretty good in terms of hourly earnings, private sector job growth. certainly we all know about housing, that sort of things. so i think the u.s. is on better footing. i think the global picture also is getting better. so i think there's certainly places to put your money and to make money. >> doctor j., virtual doc, how do you see the futures shaping up in the market? >> well, judge, i happen to agree with everybody on the panel that i don't think it's over. obviously, it's not just getting started, though. this is getting on the old in some respects, but given what we've just accomplished with the fiscal cliff and getting that behind us, that means, of course, we still have these other two tissues that i won't talk about right now, but i will say that this helps europe, this helps china and that means that

we can continue on this run. so, yes, i'm still bullish as far as where we can go because of what they did last week. >> well, it has been a heck of a run. but our next guest says it won't last. he's ron sloan, senior portfolio manager at investco. good to have you on the show. >> morning. >> why isn't it going to last? >> well, i just think that we have to recalibrate everything. we've had this wonderful move on valuation, but it really hasn't been accompanied, especially in the last year by earnings. and so how are we going to get earnings to grow? it's going to be hard for them to grow organically. we need a lot of top line growth. we're going to be sloshing around for a while. we have to kind of reset everybody's expectations.

through m&a organic, that's going to be tough. >> isn't the global landscape looking better? u.s. economy seems to be getting better? europe isn't as bad as it seemingly was? the story is not all that bad. >> no, i agree. i think china is a different issue. yours probably isn't as bad as everyone has planned for you. it's time to buy from us. manufacturing and the industrial part of the company have led what economic growth we've had. we're going to continue to see at the aggregate level this kind

of angst and grinding. >> josh brown, let me just jump in and ask you, isn't a lot of what we've seen a question of a reversal, of a three of four-year trend of fund flows going towards fixed income now coming to this relation that a lot of tail risk is off the table and they can come back? >> i think the point you're trying to make here, what i would say is this. all this money that was bought into treasuries, let's say, at trillions and trillions -- >> a lot of money. at 2.5 when the ten-year's 2 1/2 and we've got losses in our portfolios, we already have some losses already at 2.9, let's say we're at 2.5 or 2.8 where we are not that long ago, what's going

to be their reaction? are they going to take those losses right away or not? my guess is that no, it paralyzes everybody for a while. and then let's say ten years to get over three or something and we've got some real novel going, then i think we have some slow potential. but there's a ways, also, too, i think. >> ron, what do you think the chances are that the first half of the year is trough nernings and we could see a hockey stick in the second half of the year based on the better global environment? plus, by the way, companies have done a great job of getting costs. >> well, i think staying at the elevated level is going to be a tough school. i think margins have to come down to get marginal growth higher. i like the durable goods, the factory orders.

they're going to have to take a bitter pill with margins coming down, whether they buy something or whether they reinvest in their business, they're going to have to take a short-term margin hit to buy that top line growth. and so that is the only way we're going to get real earn eggs growth. >> ron, i want to go through some yck picks, which some people may not deem on be the most sexy around. kello kelloggs, man tech, microsoft, ge, progressive insurance, you can take any one of those or a couple of them. talk to me. why do you like them? let's take progressive as an example. everyone sees the advertisements on television. this snapshot product has required a two to three-year reinvestment of funds in the company.

now they'll be able to get this snapshot over the next few years. they have deliberately slowed business to set up for this period. if you have to fight and is deal with margin deterioration, now we have better margin growth ahead of it. that's the theme of everyone. new management, obviously, where the big dictates to do something. who knows. in microsoft's case, new product. windows 8, it's not an enterprise product.

kelloggs, there sa short-term hit, but it has a good management team the grow earnings. that's the theme of all these, ge getting out of the capital businesses and becoming a real old fashioned industrial conglomerate in higher growth areas like, you know, medical and safety and oil services. so these are the companies that have, i think, much better earnings and marginal opportunities ahead of them because of the reinvestment they've made over the last years, which will be different than the rest of the corporate america. >> ron, it's great to have your insight. thanks so much for coming on halftime today. >> it's been a pleasure. thanks. kel loegkelloggs, ge, what's th best story? >> ge because i own it. no. there were all these gone got rams on the industrial side. they're getting cleaner and

leaner. this is going to be an industrial company and they're shedding tons of cash flow. >> none of those companies are questionable, per se. but i think it's much more interesting now to start looking at some of the cyclicals, some of the less defensive areas that clearly we need a mean reversion. they should start to play catch up. i'm not hugely enamored of any of them in particular. >> that's the point. not the sexiest plays, but if you're a stock picker and a good one at that -- >> there could be some opportunity there. i will be looking outside of the defensives that have gotten them the there so far. >> i can't believe you're going to look at semantic when you have kelloggs acquiring bringingel. >> that's a missed opportunity. >> that's one of my picks on his list that i like, as well. >> progressive insurance, i like that, as well.

i feel very strongly about this. i want to point this out. understand ron has a macro view of the world, but yet he's putting $12 billion of capital work in the market. if you're going to have the approach like the hedge funds and most mutual fund managers have for 2012, where is the s&p going to be inspect you're going to underperform just like they did. >> let's get a market flash from a name moving right now. brian sullivan, what are you watching? >> i'm watching facebook. facebook is up again today. there's no news out, but this stock continues to power higher. about 10% year-to-date. but it's up about 40% over the past month. i get it. not at its ipo price. a lot of people still got burnt on this thing. maybe sold at the bottom. but, guys, this is a name that has kind of clawed its way back and is certainly a name, guys, to watch. hear how you guys want to trade this thing. how much can you post, like, humble brag? >> what's going on here is pretty elementary. >> more buyers than sellers.

>> eats even more elementary than that. >> stock-omomics. >> there were 90 people caught short of this thing in october. there are now only 55. 90 million shares short. that's what created huge opportunities when you have such a universally hated name. probably wasn't worth 40. definitely wasn't worth 20. so nobody is getting fundamentally bullish about facebook and saying -- >> no, i've got some people who are getting more fundamentally foolish about facebook. >> and it should be more fundamentally bullish because we've gotten past the point of really the tremendous uncertainty surrounding earnings. we talked about this at the beginning of the year. money flow, it's significant. in particular, the growth managers who focus on technology and they're looking at facebook and they're looking at the recovery. >> ahead on halftime, why the battle inside the fed may be more critical thank than you think and how it could impact the rally most importantly in your money. but first, shares of netflix

break for the first time in eight months. gamble on the comeback stock. one stock, two opinions. later, one of our traders may be licking some wounds right now over amazon. shares bidding all-time highs on a key upgrade. we'll revisit the losing call. with the spark cash card from capital one, olaf gets great rewards for his small business! pizza! [ garth ] olaf's small business earns 2% cash back on every purchase, every day! helium delivery. put it on my spark card! [ pop! ] [ garth ] why settle for less? great businesses deserve great rewards! awesome!!! [ male announcer ] the spark business card from capital one. choose unlimited rewards with 2% cash back or double miles on every purchase, every day! what's in your wallet? ♪ [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids, [ children laughing ] move to the country, and live a long, happy life together

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welcome back. netflixs soars above $100 since april. should you buy or sell pass stock hits this key level? joe is our bull. stephanie is our bear. let us debate it. you're buying it. >> yes, i'm buying it. let me answer your question. but i am going to ang take the angle of fundamentals are terrible. i know the disney deal, 2016, that's going to be okay. now you're a money manager. what do you do with this stock now breaking up? the shorts are getting -- earnings are coming on january 25th. what's going to happen with these earnings? on the street, you know what the average price target for the stock is $67. you know what they've done with earnings estimates? they've moved earning estimates from a loss of 8 cents to a loss of 12 cents. yet the stock has gone from 64 up to 101. i think if you're going to continue this especially after earnings, earnings revisions move higher. that will be the point where you and i have this debate where u

you say, stephanie, that's right. >> the stock is up 73% since the disney deal alone. expect age res high, even if they were to make the numbers. i'm not convinced they will. not to mention that they're investing heavily internationally. so your margins are under pressure. i don't really care if you go from a loss of 12 cents to maybe a loss of 6 cents. a loss is a loss. i think the fundamentals are problematic. i think most people are thinking that this disney deal is going to be really very successful for them and it might be. but you're not going to see subscriber growth until 2016. in the meantime, you've got to shell out a lot move money for these contests. >> aren't they spending too much money? >> spending way too much money. if you get a loss of three cents, the street has to move higher. that's what i'm playing here. this is the end of the netflix trade for me, so you know. once january 25th rolls around, it's going to be a get out of the stock moment for me one way or the other. >> a takeover potential or a

deal potential hurt by the amount of moeven they're spending on content? >> i think so. if you think about the disney deal, it was probably 300 million to 500 million. they have to do several of these. i think that hurts the nav of the company and the confidence in general is very -- it's a struggle. >> all right. compelling arguments on both sides. josh brown, who made the more compelling one? >> this is one of those situations where i think the obvious answer to that question is that joe is right from a momentum standpoint, but i think stephanie will be vindicated. you could basically flip a coin. they have a nasty history of surprising the street and there are a lot of moving pieces here. this could be one of the quarter where they do that again. >> dr. j., do you agree with j.b.? >> i certainly like that people are so willing to phase this rally on the on stock. but what strikes me, judge, is that carl eye can got this thing kicked off with that aggressive accumulation that he had and he's approach ago pure double on this now.

i wonder how many more legs or how much longer this thing lasts without carl taking some profits and getting to the sidelines? our guys are in that same thing over on the blog. i'm worried. but joe has been right and congrats to him. >> we'll close the case on netflix. if the rally has taken stocks to five-year highs headline r really is a risk, what role will the nation's central bank play? steve liesman is here with that story. steve, it's good to have you back. you know wab if the minute unveiled anything last week besides the fact that they spooked the market momentarily, they showed that there's seems to be a battle inside the fed. how real is it? >> what's interesting, scott, is there's not one, but really two battles. the first battle is that there's differing opinions at the federal reserve over the improvement in unemployment rates. some guys had one metric and women are included here, too, as

well. for when the -- we'll hit that 7% -- >> with all due respect to janet yellen. >> absolutely. what you're looking at here is the count where everybody is in their forecast 2013. you can see a pretty solid majority, 16 of the 19 are at 7.4% or higher. to be sure, the fed had this wrong in the last year. they're almost a full percentage point long at the end of 2011 when it came to 20 is 12. the other fight is the one that's more interesting. the minutes know several members of the federal reserve board are concerned about the balance sheet and the unwind of the balance sheet. this means they're concerned about taking losses of the balance sheet. they're concerned about what else to the payments the fed has made. probably going to be around 80 billion this year. the fed could take losses pt and the other problem right now, also an economic and political problem, is that in order to keep those reserves from becoming high powered inflation

and becoming loans, the fed has to pay interest on reserves top depending on what happens to interest rates, those numbers could be tens of billions of dollars. the federal reserve pays the banks, if you think the fed has problems now, wait until that happens. >> so what are the traders supposed to do with that information snm. >> so right now we have to watch carefully the meeting at the end of this month. but also the statements. what we need to know is who are these folks who are concerned about the balance sheet? if the one set of characters, the guys who have been in open on sigz to the fed all the time, that's not a problem for bernanke. but if it ends up being the centrist guys, maybe members of the board of governors and other centrist presidents who have supported bernanke, then you could have a situation where qe3 could come off sooner than you guys think. >> do you get a sense that it's the centrist? >> i have some concern that it could be, that some guys in the middle may have concerns about this balance sheet unwind. and we've got to wait to hear

their comments. but it did not appear to be jim bullard who i talked to on friday. he was saying that he thought we were going to hit 7% unemployment by tend of the year. and that would be a reason to stop qe. so it didn't sound like burlard would be the guy to poll. we also have to find out wa esther george thinks. she's the new kansas city president. what i don't know is where the board of governors. it's very, very unusual for members of the board of governors to vote against that. >> is it possible that some of the people involved in what we've termed inside iing aren't involved in the voting? >> that's an excellent point. so the minutes tell us that participant res voters and members is the fuller fomc. this particular segment of

minutes suggests it was just the board. i don't think the fed chairman wants to move ahead with $85 billion a month of security services with a lot of opposition from members or participants. i don't think he wants to do this policy. so remember, at 85 billion a month, you're going to increase the balance sheet by $ trillion. >> j.b., are you worried about this sort of thing as a trader who is watching the market every day? the market reacted, reacted negatively to the release of the minutes and this perception that q3 would end early. what are you thinking now? >> it's a mind-set, the 180 where we're now talking about too much stimulus, having this conversation nine months ago. it's a whole different story. so from a trader's perspective, this is the last thing i'm worried about. this is fairly bullish, hearing that they're worried about too much money, too much hiring. i'll take that as the case. >> good to see you, as always. thank you. coming up, the blue trade. which stocks see a boost from an

outbreak. first, amazon stocks at 52-week all-tie highs after a morgan stanley upgrade. does the firm know something one of our traders doesn't? we'll get some answers. commodities king dennis gartman tells you if you can still make a mint off of gold.

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tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5373. i'm phil lebeau. welcome back to the halftime report. more breaking news regarding that boeing 787 dreamliner that caught on fire while parked at logan airport in boston. this is video of the japan airlines plane. the plane landed. all of the passengers left the plane. a mechanic was doing a walk-through when he noticed a

light smoke condition increasing from the underbelly of the plane. they then called the fire department. the fire department came. they investigated. the fire was in a compartment with batteries and other electrical components. they are still investigating exactly what has happened. we have a call into boeing. boeing has not responded to our request for more information. i think boeing is still trying to figure out, base odd what they're hearing out of boston from the fire investigators exactly what's going on with the 787 dreamliner. a couple of things to keep in mind, scott. the mass port officials at boston just held a press conference where they said prior to this they've had a few mechanical issues, nothing major, regarding the 787 dreamliners that landed at that airport since they went into service. one other thing to keep in mind, this is the fourth understand or issue involving this 787 dreamliner in the last 34 days. united has had a couple of electrical problems. one where the plane lost some power and had to do an emergency landing in new orleans. another where they grounded the plane for electrical problems.

you had the qatar airways 787 that had a similar problem as it was flying into doha and now you have this report of a fire in the belly of a 787 dreamliner, japan airlines dream liner. no passengers, now crew on the plane. guys, the broader concern for investor necessary boeing is whether or not there is a more serious issue regarding the electrical system or the bat ris on the 787 dreamliner. we're going to keep monitoring the story and we'll bring you the latest as we learn more from boston or from boeing. >> quickly, phil, is there a point where orders at boeing is taken for 787 dreamliners from some of the nation's biggest airlines could be at risk? or no? >> i think we're a long ways from that point, scott. you would have to find a situation where boeing says, listen, we have a major problem with the ground system and we're going to ground this entire fleet. this plane went through extensive testing while they were developing it. it's not like they're flying it and going, oh, this has already

happened. but there clearly is something that has developed over the last 30 days when you have four incidents like this. the ceo was critical of being regarding the loss of power or the perceived loss of power on that flight of the dreamliner going into doha. and boeing is investigating the electrical system to see if there's a problem there. so far, aside from the grounding of the united 787s last month briefly when they looked at some of the electrical systems, we have not heard anything else from boeing in terms of, hey, we found a problem with the system. we know they've been investigating this for at least the last 34 days. >> phil lebeau, thanks so much. stephanie link, a handful of problems on the newest airline that boeing has. >> yeah. and the stock is up $4 in the last couple of weeks, too. so it hit new highs. so it's obviously getting it back today. it's not good news. this is one of the reasons that we sold this position. we took small gains and put it into something like a utf which

doesn't have the headline risk like the boeing does. i still believe strongly in the replacement cycle story. and the 787 is a pretty impressive lane from productively measures and that kind of thing. the headlines coupled with the stock of new highs, you can see why. >> when you already have questions about the long-term profitability, you have to sell a certain number over a period of time and that number is big. >> they have a huge backlog. as they can get this thing going more smoothly, then their free cash flow starts to improve. that's the full case, that the free cash flow improves. they improve their balance sheet. they start shelling it out to shareholderes and that kind of thing. we're a long ways off from then. >> boeing is the second worst performer behind disney today in the dow jones industrial average. of course, we are getting some back after what was the strongest week for stocks in more than a year last week. take it into context. we're watching gold, falling six straight weeks now, the longest

losing streak in eight years. dennisartm et toditor of "the gartman letter." good to see you. >> good to be back. happy new year and same to you. the biggest question for gold is the fe, right? >> i think the biggest question for gold is the fed. i think the biggest question for gold has been the fed. the probabilities of -- i shouldn't say that. let's look at what the fed has been doing. let's look at the adjusted monetary base. therein it takes the case for gold in dollar terms away. we are simply not creating the dollars that everybody thought we should be and gold and dollars terms has been weak. gold and yen terms, however, is only a couple of pennies away from its all-time high, a completely different story. >> so does gold get trapped in a

range, dennis, for the simple fact that it may take several months to fare it out, exactly what the fed is going to do with quantitative easing? quantitative easing ends, you could obviously have a reaction that would be more negative for gold. so are we just going to be in a waiting pattern? >> no. i think that gold and dollar terms could well be on the defensive still, judge. i'm very bullish of gold and yen terms. i could be talked into being bearish of gold in dollar terms for that precise reason. the comments from the pedestrian in the minutes last week i thought were extraordinary. very different from what we had expected. a great comment earlier on by steve liesman autos to whether it was the participants or the members of the fomc who were the ones that made the statement last week about the need to stem expansion of the fed's balance sheet by the end of this year. we'll know at the end of this next meeting whether it was the participants or whether it was members in a broader term. we'll see. but at this point, being bullish

in gold and dollar terms is i think a very difficult thing to do. >> joe terranova has a question for you, dennis. >> sure. >> if you were to make the argument that economic activity globally was going to improve -- >> and i think it will. >> okay. so wouldn't it suggest ownership of the real industrial metals, the palladiums, the platinums and the silver necessary lieu of gold? >> i couldn't i couldn't agree more. what i like to own is steel. perhaps one might want to own copper. i would to own simple things, the simple things that are incumbent in global economic growth, which i think is what we're going to have. in your case, you would want to own the industrial pressure metals. in my case, i'd rather own iron or, steel and gold in yen terms. >> dennis, pleasure as always. we'll catch up with you again soon. >> thanks, judge. when halftime returnes from two tech giants to a major bank that are in our top three trades

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welcome back. let's get another market flash from brian sullivan. what are you watching now? we're watching wal goods greens. jeffrey upgrading its stock raised the target from 47 to 50. i don't know. you can see near nine and change for the upside. but it has to do with the flu, as well. as you guys may know, i was wiped out all weekend, completely hallucinating about writing josh brown like a unico unicorn. don't read into that, by the way. >> how can you throw something like that out there and make a statement like that. >> i had a 103 temperature. >> millions of americans are looking at that vision right now. >> millions of americans, exactly. 5.5 million flu shots administered by walgreens. that is up from last year. the point is, as bad as the flu season is, and i can attest it is bad. when you're dream about josh brown, it is bad. >> you might not have the flu, you might be love sick. >> maybe i was love sick.

>> anyway, i'm going to go. do you have a trade on that? >> no. >> since you called you out, do you want to trade that? >> long unicorns. >> it is a very -- 47 is a little bit of an aggressive call on walgreens. cvs has worked quite well. tamiflu, you're looking at roche. if you want a play in europe, that's the way that you could get long that name. but i think it comes back too cvs and walgreens. i go cvs. >> stick with walgreens, joe. i think cvs does type, but i stick with walgreens because those flu shots aren't working. they don't have the active ingredient to fight necessarily what 341 million people have and so forth. so they're going in buying a ton of different cold medicines off the shelves at cvs and at walgreens. that's your play. all these ancillary products that people will be buying.

>> we have a to run, but who is going to argue with the doctor? but that actually is a great point. >> it's a time-out in san francisco where the biggest names in the industry are showing off their prescription for profits in the year ahead. barbara ryan is a cnbc contributor with more than 3 years experience as a self-side analyst. she joins us with that event from her best plays. >> nice to see you, too. we're out here at the woodstock of health care. >> sing a good tune for us. which stocks should we be focused on? >> well, i think, you know, gratefully for pharma and biotech, innovation is back. i think investors clearly are here at the start of the year to focus on what the outlook for 2013 is and in farm na biotech, what the big new product stories are. i would highlight three new companies. one is fooid pfizer because i think the company got bells and whistles for everyone. it does have some new products

in rheumatoid arthritis and stroke coming this year. clearly a big company that it's difficult to move the needle. but the company is divesting of two of its core assets. nutritionals business and its animal health business. the net cap from those divestitures will be used to buy back stocks. the company has a cheap multiple lower than the market and has a high dividend yield and is increasing its payout. on the new product front, i would highlight gilliad, clearly the lead horse in the race to develop new oral therapies that will virtually cure hepatitis c. this could be potentially a $10 billion opportunity for gilliad. and they'll be highlighting their late stage pipeline at s.a.b. morgan this year and put out a press release this morning to that effect. biogenidac, which has a strong position in multiple sclerosis

but will be showcasing its pipeline to extend that leadership through some additional new products they'll be introducing. >> gilead has a lot of hepc phase drugs. they're going to get results from. which one should we pay attention to and what's the time frame there? >> well, i think they're all important. i think, you know, that hcb is not, you know, a what homogenous disease. globally there will be different opportunities. i think certainly they'll all be very important. they're tot going to be without competition. there's another phase three portfolios in hepatitis c. i think everyone is looking at who are going to be the winners. the lead player is certainly gilead with the most potent and most advanced portfolio of combinations.

>> hey, barbara, it's josh brown. one of the key performers last year was frankly there aren't that many left of high quality. do you think that persists into 2013? and which mid to large biotech do you think has the most underappreciated asset to a portfolio right now? >> good question, josh. and i think that's absolutely right. i mean, there is a scarcity of innovation in the products out there. certainly the large companies are all looking for innovation and have certainly demonstrated. in hcv, i think we see clearly the greatest degree of advancement in therapy and we saw gilead buy pharma set for $11 billion and bristol myers make a big acquisition up in the market which didn't work out that well for 2.6 billion. i think two companies that i would point to and investors are enthusiastic about would be biomari fl which is a company that targets genetic diseases.

and also onxy, which is an oncology company that has a partnership for a phase three drug in breast cancer with pfizer. so those would be the two. >> barbara, it's great to talk to you. thanks so much for spending time with us. >> great to talk to you, too. >> dr. j., trade these. >> i love the onyx pick, quite frankly, judge. i think that one is going to see some good results and has very close to delivering this, as she said, phase three. so i anticipate a positive return there. >> all right. coming up, can amazon continue to surge while one of our traders is changing his tune? and plus, the biggest pops and drops today. much more halftime is just ahead. with the spark cash card from capital one,

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if your bank takes more money than a stranger, you need an ally. ally bank. your money needs an ally. coming up at the top of hour, is there time to run in this market? then bank of america reaching a $10 billion settlement for fannie mae. what does it mean for stocks and for investors as they move forward in this coming year? and would you pay more than $1 million for your next ride? apparently a lot of people would. we'll go inside the world's most expensive cars. >> thanks so much. looking forward to the top of the hour. not so fast, joe. our traders are quick, but

they're not always right. let's take a listen to what joe tear nova said about amazon when we debated it a few weeks back. >> i'm more worried about the downside. 200 day moving averages at the 220. folks to get out of the market. institutionally, you mentioned 80%. institutional ownership. sgling in 2013, facebook institutional ownership increases dramatically at the expense of names like amazon. >> well, well. >> shares run 8% since that call. companies hitting all-time highs today after an upgrade over it. morgan stanley, what do you do here, joe? >> let me share with you why i'm still here after 25 years. i'll tell you exactly what you do. you look at the person next to you and you say, excellent call. i won the debate. i am wrong by fundamental thesis and the price action in amazon tells me that. move on. >> do you change the way you do i buy it? no.

>> the case that you made, you still believe, jb. >> the case that i made? >> yes. >> no. i do not believe. i believe i'm wrong and my kmep tarry going forward on amazon will be far less strength thend or much -- >> by the way, let me just say this. >> price target of -- >> that's someone who actually trades and manages money, is the ability to say, that's what i thought, it didn't work out. i'm on to the next, i'm not dwell -- that's commendable. >> i have sat in many meetings with a former employer who you know well, folks around the trading table said hey, this is what i think of that. he shot them down and said, i don't care what you think because your performance is telling me, whatever you think is wrong. >> i was going to say, i don't think the upgrade today was anything new. if you read the report, the key for the stock going forward is margins and why the stock is so well is because they did two straight quarters of margin improvement. i think that's the reason why

the stock is moving. >> doc, give me something quick. i need to run but i need to hear from you. >> i like amazon and i think fears after the netflix blow up christmas day and again new year's, we're overstated. >> all right, next, the biggest movers and we are taking positions on the big game tonight. that the bcs championship game. more halftime just ahead. [ male announcer ] where do you turn for legal matters? at legalzoom, we've created a better place to handle your legal needs. maybe you have questions about incorporating a business you'd like to start. or questions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide you along, answer any questions and offer advice. with an "a" rating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected.

final college football game of the year. winner take all. alabama going for it for four years. i know our boy is down there, notre dame grad, former player. i know who he is going with. who are you picking? >> oh, yeah, he has been tweeting pictures with himself and the bus and with a bunch of stars from notre dame teams in the past. judge, the game opens 9 1/2 and goes up to 11 at one point, the spread. oh, oops, that's the oklahoma game the irish won by nearly 20. i think they cover in this one, judge. i don't think they win but it'll come down to whether or not aj mccarron, quarterback for oklahoma, actually plays the kind of game that my brother pete thinks he will. if he does then i think they win about 24-21 on this one. >> all right, a good game, we know that. >> sure. >> let's check in with seemo ya

mo -- seema mody. >> on that note, we want to know, what's your top earnings pick? which company do you think will beat the street? think about it and don't forget to tweet us at cnbc fastmoney. we will discuss it tonight at 5:00. >> midday trading, first one is first solar. >> that is never a great reason it enter trading. you see it giving back right now. still remains locked in the long-term down trend. i wouldn't buy it. >> doc, what's the skinny on vivus? >> a skinny drug, the pun intended on your part. >> yes. >> uptrade today, about four times normal volume as well. looks like it could, if it holds this, breaks up to upside perhaps 20 within the quarter.

>> phillips 66 is running out of gas. >> that's so lame. the refinery report of emissions saying -- >> i was on a roll. figured i would go with it. >> i think you buy phillips 66. i think you look a all of the refiners pulling back and buy them here. you want a long-term ownership of them. >> don't you always think go with what's working? go with it. final trades are next. ♪ [ male announcer ] how do you make 70,000 trades a second...

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